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11/17/2008 12:00 AMCorey Butler Jr., Faribault Daily News FARIBAULT — If voters approve the proposed $15 million bond referendum for deferred maintenance for the Faribault School District in February, some homeowners and renters may be in for financial relief through a state tax refund. The first opportunity for homeowners and renters — for both residential and agricultural homesteads — is based on their income, according to Betsy Knoche, a financial advisor for Ehlers & Associates, who the district has hired as its consultant. A refund could be given if, based on 2007 taxes, an annual income for homeowners is less than $93,480 or less than $50,430 for renters, Knoche told members of the school board Monday night. Income limits may be higher if they have dependents. Currently, the maximum refund is $1,750 for homeowners and $1,430 for renters. However, that number can increase by as much as 80 percent of the additional taxes when the taxes are associated with a bond issue or referendum levy. Joel Sutter, executive vice president of Ehlers, said essentially the more the property is worth and the less income one makes, the more likely a refund will be given. For a residential homestead property worth $200,000, property taxes are estimated to increase $39 if the bond is passed. A refund of up to $32 could be available if the homeowner’s income is low enough. “For a lot of people it will be a $0 (refund), they won’t qualify,” he said. The second option for homeowners and renters is for all homestead properties with a gross property tax increase of at least 12 percent and $100 over the previous year. The refund is 60 percent of the amount by which the tax increase exceeds the greater of 12 percent or $100. The maximum refund is $1,000 per taxpayer. “This is particularly beneficial in the first year of a bond referendum,” Knoche said, because there is typically a relatively large tax increase. A taxpayer must fill out state tax form M1-PR to find eligibility for the two different tax refunds and deferrals. Ehlers currently handles 175 bond issues in Minnesota, more than 39 percent of the state’s total. Sutter said Ehlers will soon provide further detail concerning the bond issue and the financial impact it could have on residents linked to the district’s Web site. The bond money would be collected over 15 years and be used to pay for such things as roof repairs and park lot resurfacing. Principals pact approved The school board ratified the principals contract Monday 5-2. In the contract, the principals will receive retroactive pay for the 2007-08 school year by the amount of $12 per day. They will also receive health insurance benefits by the maximum of $900 a month. For school years 2008-09, principals will receive a $12.25 per day increase. They will also receive a maximum health insurance benefit of $1000 per month. The total compensation package over the two years has an average increase of $8,651.93. Superintendent Bob Stepaniak said the principals contract, like other district contracts, are typically resolved following the teachers contract. Because of an unusually long negotiation session for the teachers contract, other contracts have been pushed back. Otto Luknic and Richard Olson were the lone dissenters. http://www.faribault.com/news.php?viewStory=38901 | ||||||||||||||||||||||
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